Employment bonanza looks like another false start

We suspect that the jobs bonanza over the past two months does not signal an upturn in the economy. The impressive 117,200 positions created in September and October was the strongest two-month showing in over two years. It is close to two-thirds of the total job gains we would normally see in an entire year. Moreover, the gains were only partly driven by the export-orientated manufacturing sector, with construction playing an equally strong role. Unfortunately, labour demand in the construction sector is likely to cool next year in response to the knock-on effects from sharply lower oil prices and a drop back in residential building.